IMF sees New Zealand growth easing to 2.8 percent

"In its annual check-up of New Zealand's economy, the IMF said consumer spending should moderate due to a cooling in the housing market and higher interest rates, while export growth is likely to be dampened by a stronger exchange rate.



New Zealand's economy has remained stronger for longer than expected as growth averaged 4 percent in each of the past three years, raising the specter of interest rate tightening by the central bank.



The IMF said the government faced a difficult balancing act on monetary policy -- between responding to inflationary pressures, while avoiding a sharp slowing of activity."